AUTO INDUSTRY NEWS

Toyota confirms new $450-M plant in Malaysia

Toyota confirms new $450-M plant in Malaysia image

Text: Anton Andres / Photos: | posted May 26, 2016 07:05

To begin operations by 2019

Seeing the gradual growth of the Malaysian market, Toyota Motor Corporation has decided to reorganize its production system in Malaysia. TMC will be building a new plant to serve as its production core in Malaysia.

The existing Malaysian plant has been around since 1968 and among the first cars built there were Coronas and Corollas. In the meantime, production will be divided between commercial and passenger vehicles until the new plant is built. Toyota adds that new processes and distribution will be optimized based on vehicle structure and size, which, in turn, will increase productivity in the existing plant.

UMW Toyota Motor Sdn. Bhd. (UMWT), with its subsidiary, Assembly Services Sdn. Bhd. (ASSB), will proceed with Toyota's plant reorganization. The current passenger car plant will be turned into a commercial vehicle plant by early 2019. UMWT will then resume passenger cars in the new plant at the same time. When completed, the new plant will have an annual production capacity of 50,000 vehicles.

"This plant is another of our efforts to create new, competitive plants, following the decisions made last year to create a new plant in Mexico and a new line in China, and the opening of two new engine plants this year in Indonesia and Brazil. In addition to introducing cutting edge production technologies, we will dedicate ourselves to developing the personnel who support the making of ever-better cars. By doing this, we will provide high quality vehicles to Malaysian customers through UMWT," said Tatsuro Takami, Managing Officer of Toyota Motor Corporation.

Toyota will invest in approximately 49 billion yen for the new passenger vehicle manufacturing plant in Klang, Selangor. Toyota says that this plant is the next step in Toyota's efforts to create competitive plants and will use new production technologies such as freely extensible lines and compact painting booths. The new features will also be introduced in Toyota's new Mexican plant and new Chinese line.